The Hartford 2012 Annual Report Download - page 285

pensionable compensation for one or more years through 2008 exceeded the maximum amount that could be taken into
account under the Retirement Plan), and their Excess Pension Plan Cash Balance formula benefit (applicable to Eligible
Employees who were originally hired on or after January 1, 2001, and, after January 1, 2009, to Eligible Employees
who were previously covered by the Final Average Pay formula and whose pensionable compensation for any year
exceeded the Retirement Plan maximum amount). For purposes of the Excess Pension Plan Cash Balance formula, a
Participant’s benefit as of any date is determined by the Participant’s account balance (including Hartford Credits for
pensionable compensation that exceeds the Compensation that can be taken into account under the Retirement Plan, and
Interest Credits thereon, as the amount of such Hartford Credits and Interest Credits are defined under the Retirement
Plan).
If the present value of a Participant’s total vested Excess Pension Plan benefit (Final Average Pay formula and Cash
Balance formula benefits combined, plus benefits under any other nonqualified defined benefit plan) is less than the
Code Section 402(g) limit ($16,500, as adjusted for inflation after 2009), the Participant’s benefit will automatically be
paid to the Participant in a single lump sum, rather than in accordance with any election made by the Participant or any
default rule. For this purpose, the present value of a Participant’s Final Average Pay formula benefit will be determined
based on the actuarial assumptions used for purposes of small lump sum cash-outs under the Retirement Plan. With
respect to a Participant whose employment terminated prior to January 1, 2009, any such lump sum payment shall be
made within 90 days of June 1, 2009, based on the present value as of June 1, 2009. With respect to a Participant whose
employment terminates on or after January